China: Key to success is working hard

Li Qiang says Chinese people are incredibly diligent, with factories running 24 hours a day

- (BLOOMBERG)

China’s second-in-command Li Qiang had a self-deprecating response when confronted with criticism from a top European Union official that Beijing's government subsidies played a role in contributing to global imbalances in manufacturing output and demand.

The winning formula is working hard — perhaps too hard.

“Right now, many companies — especially in manufacturing — feel quite deeply that China's manufacturing capacity is so strong, and the Chinese people are incredibly diligent,” Mr Li said at the closing of an EU-China summit in Beijing on Thursday. “Factories run 24 hours a day’

China's premier added that “some feel that this created new issues for the balance of global supply and demand” But that's “a separate issue, and we're aware of it,’ he said.

The rejoinder is unlikely to convince European Commission President Ursula von der Leyen, who made overcapacity in China's economy a central issue of her visit. China’s newly won dominance in global manufacturing has partly come at the expense of countries like Germany, with risks for Europe on the rise as Donald Trump's tariffs steer exports away from the US.